tv Mexicos Finance Minister Speaks at the Inter- American Dialogue CSPAN April 16, 2019 4:21pm-5:13pm EDT
management. >> watching time conversation her book, how safe are we? tonight eight eastern. also tonight, how we went. michael on the rise and fall of peace on earth. prudence world spice by amy. it all begins eight eastern here on c-span2. thursday morning, justice department will release a redacted mueller report. once it is replaced, they were about phone lines for your reaction. available, you will be able to find the report on my c-span.org. >> they are stopping at middle and high schools across the country to present the price and went to the winners of our video
competition. drop this month, you can see the top 21 winning entries every morning before washington and watch every winning student documentary along with those honorably mentioned and behind the scene winners. >> mexico's credit secretary was recently in washington d.c. to talk about the country's economy and invest in our also spoke about the clinical future and questions from the audience. as by the inter-american dialogue. >> we are going to get started, people could take their seats. good morning. thank you. we are honored to have you here. we are also delighted to partner in this event with the center in
line. to give a special thanks to my colleague for helping organize this special session. alsecretary is a very impressive and distinguishing academic career as a professor and before el salvador, i invited him to join the government and assume this critical post in managing economic policy. secretary previously worked with him when he was mayor of the city of mexico and under his direction, he earned a great reputation for discipline. secretary has been a consultant, world bank to the united nations and also the private sector. he has a phd in economics from the university wisconsin.
secretary has kindly agreed to talk about the economic agenda and priorities of the administration. it's a bold agenda and reducing poverty and inequality while boosting economic growth and attracting investment. it is not an easyy challenge but it's critical to the success of this government. the strength to pursue a different approach from previous mexican administrations. we look forward to his remarks which will be followed by an exchange with all of you. thank you again for coming in with that, but for to the secretary.
>> when i speak about mexico, following that, i know i believe there are three, i used to think there were two mexico's but i now there are three. the other side of mexico has been always modern and has slowly had growth rates. the growthat rates since many years ago, i would call these centers, the regions that were here. in the states around it, they enjoyed growth rates in the last few years. the community growth rate for the last 15 years has been about
23%. the case of the northern part, it has been twice as much, 26%. in the case of the center, twice as much. about 68, 67%. there are some mistakes, other states had growth rates of more than 2%. what we found is a very heterogeneous company. we have to take care about and also for economic growth, we
have to take it a lot. what you will see, you will review and even the infrastructure programs that they have, it will be a particular emphasis on this. that is the very first thing that i would like to tell you all remind you. the second one, mexico has grown too much compared to other countries in the last 30 years. there are several reasons for that. many reasons for that. from my.back of you, the reason is the lack of -- mexico has both private and public, 23% or
so. if you want to go, you have to have at least 25 -- 27% of unity. for the fortune, i would say do both. it has been okay at 20% of gdp. you please because the very first thingve is investment. that is what has been done in the last 30 years in mexico. very bad consequences for doing that. another problem we have is that that investment has had minimum
quality. if i can remember, three or four years ago, in which they estimatego multiplier of the economy for many countries. any one of these, some countries which ones, they also make the effect of mexico was very low. the reason for that is not magnitude, there's too much and the low or hi, the quality of it. we will give you an example of how low quality is. how it can be in mexico.tm there are some people there, let
me remind you of how it was supposed to be a train going from mexico, a little bit further, mexico city. it was supposed to be an iconic project because it was born there. it wasn't supposed to allow 29 pesos. they are spending not 29 filling but twice as much. most 60 feeling. we have to spend another 25 if we want the train system to refuse. low quality, so low that the train, i don't know who but the
way in which they pay will go to mexico city but it doesn't bus near the area but that's pretty stupid. now we will havery to spend more money on the branch of the train. what we would like to do is to increase public investment, we will have money and we have to be careful with that. especially at this time, a well projected investment. a lot of quality. that is something we are doing as well.
in particular, we are very keen on having investment in mexico. we believe we can still enjoy more productivity. when i talk about the private, i'm talking about mexico but only the important part. most of what we have in that case, we are hoping that we have a lot of foreign investment, for these examples, one is what we call now, the term is in spanish -- but i don't know how to say it in english. to connect the two ports in
salina crews, going through which is the narrowest part of mexico. there's a train but it we have to modernize it. we are taking care of the ups and downs, they are too abrupt for trains. need to go faster and that's not the case. he goes to the train and there are also bike lanes. we have everything over there. we tried to modernize vehicles because i don't know -- it
doesn't have enough for them to be over there. we are doing that as well. in that case, what we would like to have, because we have already the infrastructure, what would like to have his garden, a frdener, logistics partner. there are several good farms and trains and put. the logistic part, the two parts in the system. we are going to have a reading process, whoever wins it went.
the security reasons, take care ulof that. we would be restricting the process to companies from basically, we can do that in countries with whom we can. anyway, the second priority, one that is closer, but we call the train my a, safe more than 15000 kilometers long, a coaster all of the peninsula's, a coaster different states.
in that case, a more ambitious priority, we do have a lot of infrastructure, we have some but we are planning to divide the brave world in some parts. to have it in each part. you would like to have all the winners from mexico. so on and so forth. we would be very interested in attracting more and more private businesses for mexico. i know that you are interested in telling me. where are you? people from mexico, talking about that.
i don't want to talk about that but i have a presentation that i will give and you can share with anyone that wants. it's very good in the last three or four months. i stop your end i take questions. >> thank you very much for those remarks. twenty-five minutes, if i may be just asked the first question and then i will see everybody's, what they are thinking about for questions. there's not a lot of uncertainty about they trade, usm ca. what's going to happen without and some people think there's pessimistic, i was wondering if you could, about how the
certainty about the ratification of that negotiating committee effects the economic growth. we are very worried, many people are on that issue. it would be disastrous for us. the new version of it and my worst nightmare is that he decides to say to congress, on the other hand, regardless of what they are doing, and six months, the u.s. will leave that, he can do it. there are so many issues. it would be almost impossible.
if you could try to push the new by simply saying it will have this, we don't have any. i would be very short-term. we would be in trouble. i think it would be a nightmare. we don't consult as well. the other one, it is past and i think the sooner the better for it. we have a lot of comments and we are taking care of the most and biggest issue especially for that. it is the lack of democracy, i
would say it's in mexico. is very important for the american world. we are trying to pass a law this month. we are hoping to have it and progress this month. it's more the union and provides justice system, we have also in these families, we increase the minimum wage from x amount of money to 16% more. trying to reach a welfare level for mexico.
16% inflation rates, 4% is 3.9%. on the border where we have a particular economic program, the lowest down the corporate from 3% to 20% minimum wage rate was increased one 100%. as far as we know, normal things have any impression, also in the case of the border, the economic revenue has been. also recently, we've had received news about new contracts, minimum wage of course and the increasing
minimum wage has had a positive impact in terms of increasing wages for this one here. we got the position, we relieved that it was from all points of view from economic to moral.of view, it was wrong to deliver the minimum wage in mexico, or solo, even affects most countries and mexico. it is something that the u.s. workers, especially what they see. we are optimistic.
hopefully he will do that very soon. >> thank you. what we open up and identify yourself and try to be brief. wait for the microphone. >> nice to see you. my question will be about the road because a lot of it is about the whole program cemented on the fact that it will have higher economic growth and the first announcement is that it will be almost half of what we expected for this upcoming year and what you expect to happen to have a turn around and growth and what is your perspective in terms of growth scenario moving forward? what's going to make it turn around? >> the economic growth is
slowing down for everybody. specifically the europeans now. we are still thinking about economic growth will be 2% lower. we change the interval from 1.1 to 2.1% because we want it to be in line with that. we are very respectful. we don't want to miss that. the back house regular. we assume there will be a 2% white. to start with this focus on the
south of mexico will help. it will help because we are stimulating demand and investment. we believe it can be important. the argument that would be we are providing much more money than before. the case of what it indicates. we believe we can do it. to tell the truth, we have to go especially the announcement on nothe projects like the ones i just talked about and many others. and also, there has been some successes and some projects that
if you hear from them, when you hear about them, you will think it won't work. but it is working very well. it's supposed to connect 300 through our communities and states like that one. the government especially where their communities are ruled by -- i don't know hundred say that in english. the government is doing is to transfer money and take advice to those communities. they communities, they are giving up roads of concrete, they are really nice roads, a
community that is doing very well. they are doing very fast and in a labor-intensive way. we believe the difference in spending this position will help a bit. we are concerned about the lowering down of it. >> thank you. >> good morning. you mentioned the oil sector, my question is on one of the largest creditors. education has recently made announcementni, fed into $8 billion which would provide 12 to 18 month relief. my question to you is, what are the plans for future, is this something that can be expected
on an ongoing basis? question number one. question number two in terms of the refinery, how would that be financed? given they already have six refineries operating under 35% capacity. thank you. >> let me say before answering that question, let me remind you that you will be amazed by some of the latest results. now the motion is like this. the past five years or so. now we have stopped that it's going up a bit. this is the first. you will see that in 2016 and 17
the time particularly, it has a new flow, so there are some things happening. i say this because everybody says it's just helping in that way. that will work. we believe it will work. the problem, that they had is simple. they have been overtaxed for many years. a lot. so one thing you could do is try to reduce over taxation and we are doing that. we cannot tell them reduce that
by half, we will be in trouble. we are trying to reduce the tax and duty charges but also we have to take care of it. you can see it over there, you endure in the last few years, a few months from january and february and march, for the last many years, they already have issued that. at this time, they have not -- let me see if i can find that one. this is the issue, 2000 -- 2019.
issued in the first three months, they have been able to reduce that and also by not having to go to the market. they will have to and they will have to refinance i would say about $6.4 billion this year. they will allow them to go to the market, they will be able too. it will be very expensive. we have, on the other hand, for other reasons, wanted to reform, you have a counter instead of the way they decided. we believe it is in line of most of the installation.
it only means that when you are in trouble, you are doing well, you put the money in. what we are doing is to design that, 300 billion. to take00 about 100 or so. particularly what we want to do is to lower payment, part of 80%. that is what we are doing. later on, it's their problem. there are people who believed that.
but we don't like that. he would contaminate our own. we are aware that in the short term, they will provide that. >> thank you. in the back. >> i wanted to ask you in your recently published budget for 2020, youis have forecast a production of 1.9 million. can you explain how we will get to that amount? especially in the same budget that you published, expenditures will be down by 0.7%. it would seem to me that in order to 1.9, would actually need to invest more and i feel
that maybe the room you have is not that big anymore. you are doing a lot of work this year. >> at this point, 1.73, 1.7 for now. if i said we are in the fields that are really very good, but also they don't say that here. i wish they had done that. they are going to be a lot of private constituents private companies. to explore it in the oil fields.
it's a service contract. that company enjoys the benefits. they are not trying to do that, the farming out but they are going to open up a lot for this service in many, many, but i'm talking about dozens and dozens of oil wealth. they are very aware that they don't have enough money to have capitalist manager. they will try to use the private sector. >> thank you. >> i wanted to ask you about --
>> in the microphone. >> related to your department but not directly. it has to do with immigration. president has insisted correcting my view that the way to. >> the immigration from central america is investing in those countries. he has used figures, $20 billion and i wonder where is that money going to come? do you realistically expect the company to invest when the person, do you have that money to invest in central america? >> thank you.
i believe she is one of the best that we have in mexico. that question is difficult to answer. i don't know much but i can tell you some. i believe that most believe and most americans believe that the only way we can deal with this migration problem is more growth in the region. in some countries seeing central america, they have had in the last decade is very meager compared to their population. it's that it has to be a kind of shall i say, a little mashup
mexico work together we can commit ourselves, mexicans to help in the building. i don't no much of it. >> another question, yes please. >> good morning secretary. i graduated and i am a graduate student at georgetown. why do they let rely on foreign direct investment after the cancellation of the name there's a lot of investors that come to mexico. can you tell us how you project to change these perceptions?
>> many years ago, i don't want to talk how many years. [laughter] >> it's very difficult decision to solve. there were many views and even the president had a view about that important. but the most important reason was the fact that it would be extremely expensive. they were already in a delay in the process and it would be extremely costly to maintain. i know that it's very costly to do that. at some point we expected the
airport project to be finished in 2024 or so. it was so delayed. of course that made -- people were concerned about how we would treat those words. and the answer was, we would honor them and in fact what we have done is to lower the amount from $6 million to $4.8 million and we have changed the contract agreement. that is okay now in its easy to service.
that part has been solved. but the other part is that investors, most of the investors would be angry or concerned about the implications of that measure. and some people believe that has made at this point a new stance by not investing much at this point. there is a new figure that was released last week about a gross
capital permission and i had very good news. it's been the largest one since 50 years ago. you may want to take a look at that. we are not very concerned about that. as you know, we are more concerned about how and where we are going to deal with the fact that, yes we need more airports in mexico. and i hope you know that aside from the mexico city airport -- the project is going on and at this point a company that is a subsidiary is the signing the new space. it's very important that the
flighting in way in which planes go from one airport to the sky and don't compete with the other airports. apparently that is okay now. and it has been done now. it is now being built, part of the airport because it's a military airport in the military people will have two build of the airport. it is going on and we hope in six months or 12 months we will have an airport base soon. in two years at most. >> thank you. unfortunately our time has
ended. sorry for those who wanted to ask questions. i want to thank secretary for coming by and taking time from his schedule and for sharing. this is been very informative. please join me in thinking him. [applause] >> while congress is away on a two week break representatives and senators are at home meeting with constituents or traveling on fact-finding trips on the u.s. or abroad. the return to capitol hill on monday april 29. the house plans to work on federal spending and immigration reform remains a priority.
>> the complete guide to congress is now available. it has lots of details about the house and senate for the current session of congress. bio information about every senator and representative. plus information about congressional committees, state governors and the cabinet. the 2019 congressional directory is a handy spiral bound guide. order your copy from the cspan online store for $1895. >> but tb is in prime time while congress is in break. we are featuring books on foreign policy and national security. beginning at 8:00 p.m. eastern janet napolitano and her book, how safe are we. she talked about dealing with the southern border after 9/11 and concerns about terrorism. >> what we had to protect was
the notion that trade and travel needed to still occur. mexico is arizona's leading trade partner. we could not just seal off arizona from sonora which is the mexican state on the southern side. but there was a suspicion that what if the terrorist tears areo come into mexico and coming to the united states that way. we see that fear surging every now and then and even to this day but it hasn't happened. >> a try to get a broader characterization is what the border means in the daily life of an arizonan -- people who are there, how does the border see people who live in going back and forth themselves?
>> let's fast-forward to the recent issues concerning the border with mexico. in the notion that it's in crisis in the solution is to build a wall. it is not in crisis, and building a wall won't solve anything. the fact of the matter is. [applause] when i was governor of arizona i would say show me a temple wall and i'll show you 11-foot ladder or tunnel or something else. but the fact of the matter is is that we cannot see a law 1940-mile border as if it's a gigantic ziploc bag. it's a region where lots of people live on both sides, it's
a region where a lot of trade, tourism, families who live on both sides. the border is very diverse geographically and very diverse, is private land, public land, sovereign indian land, all along the border. and so really the border should be thought of like its own. it is owned that requires good management. >> watch the entire conversation with janet napolitano tonight at 8:00 p.m. eastern. also but tb, how we went, and peace on earth. angela stance on prudence world and amy siebert her plan. it all begins at eight eastern p.m. on c-span2.
thursday morning the justice department will release the redacted version of the mueller report. it will be given to congress and released publicly at the same time. once a report is released c-span will open the phone lines for your reaction. also when available you will be able to find the report online at cspan.org treasury secretary steven mnuchin went before a house committee to testify on the current state of the international financial system but he was also asked about the release of president trump's tax returns. maxine waters is the chair of the house financial services committee. >> the committee will come to order. without objection the chair authorized to declare a recess of the committee at any time. at today's hearing, we are receiving the annual testimony of the secretary of the treasury.